Sustainable Digitalization: How Mendix Makes Innovation Economical and Scalable

In this article, we will discuss the economic aspects related to adopting a vendor to implement an application. Specifically, we will explain why low initial costs do not always correspond to long-term gains.

Over the past twenty years, digitalization has taken on a central role across various sectors, opening new markets ranging from science to industry, and even reaching our daily lives, enriched by the numerous applications that each of us uses on our devices. This global and ubiquitous digitalization process has followed a precise path, where every specific need was addressed through technological tools. Countless applications, have been created, each designed to satisfy a particular need. 

Companies have also adopted this paradigm, with the introduction of specialized applications for each business function. Although this segmentation may seem advantageous as it quickly responds to needs, it has generated a fragmented technological landscape, with solutions that, while useful individually, do not always integrate with one another. This leads to the formation of heterogeneous business ecosystems, where costs accumulate without generating overall value. 

The Hidden Costs of Fragmented Solutions

"Out-of-the-box" applications initially appear as cost-effective solutions compared to custom development, but often incur additional expenses in the long run. These costs, which are not always evident during the sales phase, emerge once the company is already committed to the choice. Proposals usually only include adoption costs, licenses, and project costs, covering expenses for collaboration with service-providing companies.  

However, these proposals, which account for fixed technology costs and variable implementation costs, fail to include other cost items, such as maintenance, updates, security management, and integration projects between adopted solutions (past and current), as well as migration from legacy systems, which arise later and are often not initially considered. 

To be effective and sustainable, digitalization must follow an overarching vision. When companies do not approach the process in a unified manner, they risk creating a technological "patchwork" that, while solving immediate needs, does not optimize business processes in the long term. The difficulties in integrating fragmented solutions not only increase operational costs but also limit opportunities for growth and innovation. 

All these costs can be avoided by adopting two main strategies: 

1. Adopt technology that does not require the business to manage infrastructure maintenance; 
2. Start with a clear vision of the digital ecosystem, avoiding future rework needs. 

AtWEGG – The Impact Factory, we are aware of this scenario and have chosen to seek a solution that allows our clients to achieve the best results while maximizing spending. We do this through a guided digitalization path and the adoption of thelow-code Mendix platform. 

The Added Value of an Integrated Platform That Does Not Require Rework 

In this context, a platform likelow-code Mendix platform, recognized by Gartner as a leader in low-code solutions, offers significant value. What led us to choose it is its digitalization philosophy. low-code Mendix platformwas not conceived solely as a development tool but as a comprehensive platform that supports all aspects of the business digitalization process, going beyond the simple satisfaction of individual use cases. 

In fact, it allows for the seamless and integrated digitalization of all business processes, including those based on existing applications. Unified digitalization reduces the hidden costs related to managing separate applications, the difficulties in integrating different systems, and the maintenance of legacy systems. With an integrated platform likelow-code Mendix platform, companies no longer have to face constant updates and adjustments but can focus on a path that optimizes the entire digital ecosystem. 

In case the company does not yet have a clear vision of which processes to digitalize, we atWEGGoffer a structured approach through thePortfolio Workshop (which we have discussed here as well), identifying priority processes and creating a roadmap that optimizes the entire digital journey. In this way, even companies that do not know where to start can embark on a targeted and strategic digitalization journey. 

Licensing Costs: What Should We Consider  

One of the main concerns for companies is the costs related to software licenses, as traditional solutions apply a separate licensing cost for each application adopted or developed. This model creates a rigid ecosystem, typical of out-of-the-box solutions, where costs increase exponentially with the addition of new applications. These are compounded by hidden costs of maintenance, security, updates, and integration. 

In contrast,low-code Mendix platformoffers a sustainable and scalable approach, as it has a licensing model that perfectly aligns with our digitalization philosophy, allowing companies to and adapt without limitations.  

Let’s explain this better with the concept of “1+1=3”. Inlow-code Mendix platform, every developed application has a licensing cost, which varies based on the cloud resources required for the application's operation and maintenance. In a traditional model, when new applications are added, licensing cost theoretically doubles, as separate costs apply to each application. In other words, total costs increase proportionally with the number of applications. 

In addition to licenses for individual applications,low-code Mendix platformalso offers a multi-app licensing system that changes the game. From the third application onward, the licensing cost remains fixed, regardless of the number of applications added. This means companies can develop an unlimited number of applications with a single license, avoiding the exponential cost increase typical of traditional solutions. In this way, the value of the "1+1=3" model emerges, as the licensing cost does not grow linearly with the addition of new applications, but offers significant long-term savings. 

Conclusions

As we have seen, companies that wish to approach digitalization strategically must evaluate economical and scalable long-term solutions that can adapt to business evolution without incurring additional costs.

For this reason, at WEGG – The Impact Factory, we support the adoption of Mendix, , as it offers the advantage of being an application platform. While it may require a higher initial investment compared to isolated solutions, it pays off significantly over time!